It dropped because of selling and short-selling following a negative report plus the impending sell-off of the only segment of this company that is not losing business. They'll get badly needed cash from the deal (one-time dividend to pre-ipo holders) but in the end it's a downward spiral.
I bounced up because short sellers covered after make a fast profit.
I understand and know about those things you listed. I am asking why it hit $31.31 at 10
.06am and at that point the short covering began, along with the new longs anticipating the short covering? Why at that moment and at that price? Also, this represented about a 24% drop. Is there anything on the chart you can see, or some sort of rule of thumb which made this the bottom of the drop, instead of say $31.00 even at 10.30am even? Also, Y! numbers say that the short % is only about 11%. Most of the time that is not enough to cause any sort of nice reversal, but that with just over 9 million in the float, a little pressure goes a long way. I am just asking as a daytrader, not as an investor. Opinions, please.